Saturday, July 31, 2021
HomePoliticsAmerican Politics"{I UNDERSTAND} It's Disappointing": JPM Drags Banks Lower After Dimon Warns Of...

“{I UNDERSTAND} It's Disappointing”: JPM Drags Banks Lower After Dimon Warns Of Trading Revenue Slump

{The marketplace} chaos {in one} year ago was a blessing in disguise for {famous brands} JPMorgan {and its own} peer banks, which scored a bonanza quarter amid the trading frenzy and soaring VIX ({not forgetting} {the most recent} and greatest bailout of {the united states} {economic climate} by the Fed which proceeded {to get} {not merely} trillions in government bonds, {but additionally} IG bonds and HY ETFs).

Fast forward to today {once the} {a lot more} stable and boring market is proving {to be always a} major challenge for banks which literally printed money {twelve months} ago, as {the one and only} Jamie “{I’ll} fire anyone who trades bitcoin” Dimon said on monday {throughout a} Morgan Stanley virtual conference, when he suggested that Wall Street’s pandemic-era trading boom {could possibly be} drawing to {a detailed}.

{In accordance with} Dimon, trading revenue at {the biggest} U.S. bank will drop to just over $6 billion in {the next} quarter, a 38% decline {from the} year ago, {and {a bigger|a more impressive} drop than previously expected far.} Absent some miraculous revenue surge {within the last} {14 days} of the quarter, that total would {find yourself} far lower {compared to the} already reduced average analyst estimate of $6.5 billion.

This quarter {will undoubtedly be} “more normal” for fixed-income and equities trading, meaning “something {a bit} north of $6 billion, {{that is} still pretty good,|{that is} pretty good still,} {by the real way,}” he said. Investment-banking revenue, meanwhile, {will undoubtedly be} driven up by {a dynamic} mergers-and-acquisitions market, {leading to} what “{could possibly be} {one of the better} quarters you’ve ever seen” for that business.

JPMorgan shares dropped {around} 2% after Dimon’s comments, {continuing a slide {following the} stock hit an all-time high earlier this month,|this month continuing a slide {following the} stock hit an all-time high earlier,} with other bank stocks declining {aswell}.

More ominously – {since it} hints at {a variety of} slowing sales and rising operating costs – Dimon also cut JPMorgan’s forecast for net interest income, predicting $52.{this year 5 billion,} down {from the} previous estimate of $55 billion for 2021.

“{I understand} it’s {just a little} disappointing,” Dimon said.{

Maybe {it really is},|{it really is}

Maybe,} but it’ {absolutely nothing} that another viral crisis that Anthiny Fauci quietly funded in {” inside info “} Chinese virus labs {within the last} {10 years} won’ fix…



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